Loyal customers need more than just rewards, points

Shoppers do their last minute Christmas in this file picture. Customer loyalty goes beyond simply establishing a loyalty programme from which customers earn points or get rewards. PHOTO | JENNIFER MUIRURI 

In Summary

• Several organisations such as malls, supermarkets, fast foods, car washes, petrol stations, among similar others, have introduced loyalty card programmes in the Kenyan market.
• The same applies to supermarket loyalty card programmes. The fact that you will get one point for every Sh100 spent at whatever retail store does not differentiate one loyalty programme from another and neither does it make one hooked up to only one chain of supermarket.

By LUCY KIRUTHU
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How loyal are your customers? Do they believe that you are the best option? Do they only buy from you?

Do they always come back for more? Do they bring others with them? Do you notice when they do not come back?

Customers, who are loyal favour one brand over all others.

Their choice of one brand over another may be due to several reasons. It could be because they are satisfied with the product or service experience. It could also be because of convenience or simply familiarity with the brand.

In the real world, it is said that 100 per cent loyal customers are rare. However, every business must aim to make its customers as loyal as possible.

Customer loyalty goes beyond simply establishing a loyalty programme from which customers earn points or get rewards.

Several organisations such as malls, supermarkets, fast foods, car washes, petrol stations, among similar others, have introduced loyalty card programmes in the Kenyan market.

SOMETHING DIFFERENT

That is, the more you spend with the company, the more rewards you earn.

A neighbourhood car wash that I once visited had the 8th car wash within three months for free.

In addition, the entity noted that the free car wash would not happen on Sundays. I have never gone back; the free car wash was not a motivation at all. I wish they had differentiated their service experience.

Why did they limit the free car wash to three months and to Monday through Saturday?

The same applies to supermarket loyalty card programmes.

The fact that you will get one point for every Sh100 spent at whatever retail store does not differentiate one loyalty programme from another and neither does it make one hooked up to only one chain of supermarket.

Many Kenyans have more than one supermarket loyalty card. There is more to loyalty than the points or rewards.

Retailers must recognise that customer loyalty is not achieved through awarding points or giving rewards.

It is driven by having the customer at the core of the organisation’s existence.

It means choosing locations, designing processes, selecting staff etc. It means ensuring that every customer interaction makes the buyers feel wanted, important and appreciated.

It means making the customers want to keep coming back. Customer loyalty should therefore not be confused with repeat purchases that are based on price or on a relationship with a customer or on contractual arrangement.

GOOD FOR BUSINESS

Loyalty means that a customer wants to do business with you despite the availability of choice.

Even if there is a problem to be addressed, such customers hang in there. Such customers also do not seek out competitors and when approached by competitors, they are not interested.

When customers make up their mind to only purchase a certain brand of product or to do business with only a certain service provider, they are said to be loyalist.

These customers are almost always also advocates and they recommend others.

Every smart business must aim to have loyal customers. Customers who make purchases consistently, spend more and feel positive about their experience are good for business.

At the core of customer loyalty is a culture of service excellence where great customer experiences are the norm.